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5 Value Stocks In The Consumer Defensive Sector

What Defines a Value Stock? A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most lik...

Benzinga · 09/24/2021 10:43

What Defines a Value Stock?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Below is a list of notable value stocks in the consumer defensive sector:

  1. Bunge (NYSE:BG) - P/E: 5.86
  2. Lincoln Educational Servs (NASDAQ:LINC) - P/E: 3.62
  3. Big Lots (NYSE:BIG) - P/E: 6.48
  4. China Online Education Gr (NYSE:COE) - P/E: 3.59
  5. Vector Group (NYSE:VGR) - P/E: 9.86

Bunge has reported Q2 earnings per share at 2.61, which has decreased by 16.61% compared to Q1, which was 3.13. Most recently, the company reported a dividend yield of 2.79%, which has increased by 0.34% from last quarter's yield of 2.45%.

Lincoln Educational Servs's earnings per share for Q2 sits at 0.06, whereas in Q1, they were at 0.13. Lincoln Educational Servs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Big Lots has reported Q2 earnings per share at 1.09, which has decreased by 58.4% compared to Q1, which was 2.62. Most recently, the company reported a dividend yield of 2.09%, which has increased by 0.19% from last quarter's yield of 1.9%.

Most recently, China Online Education Gr reported earnings per share at 0.05, whereas in Q4 earnings per share sat at 0.21. China Online Education Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Vector Group's earnings per share for Q2 sits at 0.63, whereas in Q1, they were at 0.29. Most recently, the company reported a dividend yield of 5.61%, which has increased by 0.14% from last quarter's yield of 5.47%.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.